Big blue, IBM’s thrift return to sell son addiction

hunting cloud network October 27 (text editor/water/Morse good Yan)

recently, the big blue, IBM’s latest results show that its third-quarter net income of $18 million, fell 99.6% from a year; Revenue of $22.4 billion, fell 4% from a year. Revenue has the tenth consecutive quarter of decline. In addition, its share price has also appear in the week decline significantly. The series of results show that IBM encountered Waterloo, social activists, including investors, for the giant IT was with a brilliant history outlook is grim.

in history, this giant can stand for a long time to fail, and its unique business mode has a great relationship. Age in change, of course, society in transition, IBM also elegant completed two major transformation, which is as the evergreen tree keep up with The Times the pace of important reasons.

in the industry benchmark, corporate conscience of IBM’s two great transformation respectively from machinery manufacture and after from computer to computer to provide services. this again and again to the industrial chain of the upper, the latest high-tech model, given the IBM tenacious vitality.

IBM’s growth transformation history

the name, which was founded in the 1920 s from American multinational corporation headquartered in armonk, New York City, have translated into all the nations business machine company. The provide information services company in the field of materials, chemistry, physics and science had great attainments, is now widely used for us hard drive technology is the company’s masterpiece, scanning tunneling microscopy (STM) at the same time, the yard etching technology, copper wiring technology is also developed by the company, such as the r&d department of it is no wonder that he once had the Nobel Prize for three times.

believes that many people know that although translation for IBM business machine company, but now it is already with the machine, it is also up as a model in the industry constantly adapt to the trend. Some time ago, IBM signed final agreement with Globalfoundries: Globalfoundries will purchase of IBM’s global commercial semiconductor technology business, including intellectual property rights, technical personnel, and associated with IBM microelectronics technology. IBM will pay Globalfoundries $1.5 billion in cash over the next three years, to remove the chip business.

you can see, in this century, the transformation of the way is clear, the first is to sell its own hardware business:


in December 2002, $2.05 billion will be a desktop hard drive business to Hitachi.

in December 2004, $1.75 billion to sell PC business to lenovo;

in January 2014, the x86 server business selling for $2.3 billion to lenovo;

there are recent sell chip business to sell at $1.5 billion.

since to transition, at the same time in the stripping of the traditional hardware business needs to expand their product line, because IBM just latecomers care areas, do not have enough experience and technology, so it is the most concise way of mergers and acquisitions, as a result, the giant launched a bid for a large number of software products and services. For example:

in 2002, the $3.5 billion acquisition of pricewaterhousecoopers consulting department;

in 2003, completed a $2.1 billion acquisition of Rational software company;

in November 2007, $5 billion in cash for Cognos business intelligence company

in June 2013, acquired the operators to SoftLayer cloud infrastructure;

in August 2013, the acquisition of Israeli security firm Trusteer, purchase price of about $1 billion;

may see through the above actions, from hardware into software, IBM is also complied with the trend of software development nowadays.

EPS, to blame for the bottleneck of IBM

IBM are experiencing at this time of transition throes, investors are declining vision performance, but also continue to blow to the confidence of the employees. It is not only in the inside IBM, who can feel the monster signs of decline. Just like wu not in chongzhen of Ming, in wanli, IBM’s decline and not simply to blame for the CEO is striking, reduced turnover is in the era of Sam palmisano promoted by the consequences of the EPS (EPS).

the core values of an enterprise lies in the internal training by the customer experience, customer value and the composition of personnel of the company, but the people of that era too much attention on EPS on objectives and profit targets. Although the for-profit business, but not only focus on profit, efficiency focus on profit making sales department is not willing to abandon any one a product, in bad user experience will drain his value of every point.

but only attaches great importance to the customer, value service, is the success of the development of enterprises. Is good, recent IBM is looking for the lost traditions, refocus on customer value, customer first, through the strategic shift for the customer experience to push into the IBM mobile, cloud computing, security and emerging areas such as social media software.

IBM return: through “son” reforming power distribution

now that you have found the problem, so specific how to operate? See how IBM is doing.

because rooted in IBM’s core customer or the underlying business customers, business or IT services. Is the so-called good lunges punches, first of all a is up, hold on to their core values.

in the Internet age, the development of any enterprise and individual is inseparable from the network, can not do without IT. So, IT service demand is rising, the government and the enterprise business is still will be a wealth of IBM. Has two successful transition from IBM, you can see the enterprise innovation that has extraordinary strength. In the era of information explosion, want to development, constantly connected with the outside world of the Internet thinking is indispensable, IBM also to do this. How, then, the giant IBM grovelling, to adapt to flexible and compact, and decentralized challenging Internet thinking.

have give up to get IBM want to usher in the development of another spring, you must get rid of the bondage of the original business, and with a new attitude to meet the software market. Hardware is the foundation of the rise of IBM, but already not the needs of the development of the era. IBM has always been relatively “feudal”, a “unlucky son out” of the customs, you earn less? Good, that is at a good price to sell you.

for IBM never struggle with any of their business, any business can sell! especially those who have been down, those “temper the son of the big, bad tube”, “without a self, see new people laugh”?

IBM grasp of the time is very professional, every “son” in the “new man”, development and stability, customer resources up. In the IBM “ungrateful” for – completely to hardware, is to choose in their own cloud computing business has stabilized. Through repeated sober “son”, IBM no layoffs that easily cause turbulence model, easily the talent resources “enrichment” again, the original tail “too big to fail, step up affect global sales department, department of returning power to products. Company management problem solved.

but from IBM all previous transformation, IBM business in a thriving research department to start the organization, study what is the next wave of market trend, she certainly has the ability to do what, and then began to layout. Finally ripe, appeared in new business blue ocean, the old business at the beginning of the red sea, son “sell” show again and again. in the IBM “LaoErZi” thriving, all right, just began to wonder “how much a kilo” sold it.

in the face of the great changes in the market, IBM this calm, professional business decisions is lament, want to know the market but didn’t relent, IBM is a bit like the market.

market change blustery, the rise of emerging market the biggest impact of the traditional industry. From IBM for $2 billion acquisition of cloud computing infrastructure provider SoftLayer, and cost $1 billion to promote the public cloud computing business, in recent years IBM has strong confidence in emerging market, 12 for the construction of the new data center will expand its deployment in the world. Through a series of actions, IBM hopes and oracle, SAP, even upstart competitors such as amazon for occupy more market share.

IBM has started his own layout with new business. For now, most of the current silicon chips with heat energy utilization rate of volatile and low status, IBM has started to work on graphene, hoping to promote the electronic movement speed.

the next wave of “son” will be in when? maybe turn after a big circle, IBM or hardware industry leader!

IBM’s current action

is the so-called ideal is plump reality very bone feeling, has the grand blueprint of the IBM will turn as expected to start? Since IBM want to cloud computing, so its cloud computing software and infrastructure layout is how to plan?

want to turn, you must avoid elegant wall, IBM and to purchase or combination. $2 billion acquisition of cloud computing infrastructure services provider SoftLayer as the cloud computing products plan although has been achieved in the field of competition but also faced many cloud computing vendors. Face in front of the amazon, Microsoft and Google, a hybrid cloud model used by IBM market suffered huge battle. Although IBM has got benefits from the plan, but the saplings can long great trees there are a lot of variables.

at the same time of mergers and acquisitions, IBM also with apple to achieve the combination. Hope that through large data analysis to reshape the IBM striking mobile market is regarded as the greatest opportunity at present. Move the first slogan oath IBM officially enter the mobile market. According to the exclusive agreement with apple, two giant will collaborate to develop enterprise software applications, through the import IOS IBM data and analysis ability, and selling to corporate customers, this will greatly increase the added value of IBM’s services.

at the same time, IBM didn’t let Microsoft, with its strategic agreement is also in the field of cloud computing. Through the IBM Cloud to Cloud services run Microsoft server and Microsoft Azure Cloud services using the IBM enterprise software, two companies of Cloud services more flexible, and more conducive to enterprise to use higher configuration of Cloud services.

blue so the revival of the model, for the domestic business, is the development, has become a giant of a variety of companies, because of their respective actual environment, basic don’t want to experience preferable. IBM pattern basically is again and again to the company’s core advantage of revaluation, retain and develop. IBM’s brand, customer resources, technology patents, product characteristics, the industrial location, has always been he can checking the real foundation of again and again, rather than one or two may be rapid decline in the product.

your core values?

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